Hong Kong brokers make 10.5% profit marginJanuary 4 2019 by InsuranceAsia News Staff
Hong Kong brokers recorded profits of HK$1.74 billion (US$220 million) before taxation for their last audited financial year, according to a 2018 survey of more than 680 insurance brokers by Hong Kong’s independent regulator.
The Insurance Authority reported that total gross insurance brokerage income was HK$16.5 billion, split between HK$4.5 billion of general insurance, HK$10.5 billion of long-term insurance and HK$1.5 billion of investment-linked assurance schemes. With HK$1.74 billion of profit, the margin stands at around 10.5%.
The top 20 insurance brokers dominated the market, with 49% of the total gross insurance brokerage income. Close to three-quarters of brokers have less than 10 staff while 5% employ more than 50 people.
A total of 708 brokers in the special administrative region responded to the survey out of 771, however 17 start-ups were excluded from the survey as a result of having insufficient financial data. Insurance brokers are required to prepare and submit audited financial statements within six months to the respective approved broker bodies after the end of each financial year.
The survey was conducted in April 2018, the latest financial year-end dates of the respondents varied from years 2016 to 2018, with 27%, 70% and 3% of respondents having their latest financial year end dates in years 2016, 2017 and 2018, respectively.
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